In a Nutshell ULO p

1. Financial institutions have two types which is depository and non-depository.

2. Depository type of financial institutions are banks and credit unions that lets people deposit
their money and by that they earn interest and these deposits are used by the financial
institutions in making loans.
3. Non-depository type of financial institution includes insurance companies and mutual funds
companies that sells financial products.
4. Finance companies does not accept deposit unlike other financial institution.
5. There is a type of finance institutions that still offers loans to those individual who have low
income that is called personal credit institutions.
6. The difference between mutual fund and hedge fund is that the first one offers investment
product on a daily basis to anyone but hedge funds is for selected investors.
7. There are two types of pension funds which are private and public. Basically private pension
fund is offered by private corporations while the latter is offered by the government.
8. An individual can invest through a broker or an underwriter.
9. There are many types of insurance companies. One of these is the property-casualty insurance
that provides indemnity for accidents and deaths,
10. Securities firms and investment banks serves as the middlemen between the suppliers and users
of funds.